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:. .• . .:. : . . „ : �.� Note_8— Defined_BenefiLPencinn Planc - State�jde=�nntiuued The pension benefit obligations of PERA as of 7une 30, 1995, aze shown below: Total pension benefit obligation Net assets available for benefi[s, At cost Unfunded / (assets in excess o� pension benefit obligation Net assets available for benefits At marke[ P�RF $ 5,994,492,000 $_5..474,352..444 ��2.Q13S OQD $..5..25b.b88_444 PEPFF $ 1,113,225,000 A 1_75fi,179,000 $—f242,954.4Q01 � i.aa� The pension beneYit obligation was determined as part of an actuazial valuation at July 1,1995. For the PERF, significant actuazial assumptions used in the calculation of the pension benefit obligacion include (a) a rate of retum on the investment of present and future asseu of 8.5 percent per yeaz, compounded annually, prior to re[irement, and 5 percent per yeaz, compounded annually, fotlowing retirement; (b) projected salary increases taken from a select and ultimate table;(c) payroll growth at 6 percent per yeaz, consisting of 5 percent for inflation and 1 percent due to growth in group size; (d) post-retirement benefit increases that aze accounted for by the 5 percent rate of rerum assumption following retiremenr, and (e) monality rates based on the 1983 Group Annuity Mortality Table set forward one year for retired members and set back five yeazs for each active member. Actuarial assumptions used in the calculation of the PEPFF include (a) a rate of retum on the investment of present and fumre assets of 8.5 percent per yeaz, compounded annually, prior to retirement, and 5 percent per yeaz, compounded annually, following retirement; (b) projected salary increases of 6.5 percent per yeaz, compounded annually, attributable to the effects of inflation; (c) post-retiremen2 increases that are accounted for by the 5 percent rate of retum assumption following retirement; and (d) mortaliry rares based on the 1971 Group Annuiry Monaliry Table projec[ed to 1984 for males and females. 2. Changes in Acruarial Assumptions Since the July 1, 1994 actuariai valuation, there were no changes in actuarial assumptions of the PERF and the PEPFF which impacted funding costs. Potential changes in the assumptions used for the PEPFF inay be made in the fumre. Results of an experience study for the fund during the four-yeu period ending June 30, 1994, disclosed (a) retirees aze living longer; (b) the expected active member death rate is declining; � the trend towazd eazlier retirement continues; and (d) the pattem of salary increases varies substantially by ages, with a strong merit and seniority components evident at the younger ages. Based on these results, PERA will soon consider revising the actuarial assumptions for retirement age, mortality, payroll growth, and individual salary increases. These changes, if adopted within fiscal year 1996, will significandy impact the July 1, 1996 acruazial valuation of the PEPFF. 3. Changes in Plan Provisions The 19951egislative session did not include any benefit improvements which would impact funding costs for the PERF 42